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CORPFIN 7022 - Advanced Corporate Finance (M)

North Terrace Campus - Semester 2 - 2024

The objective of the course is to gain an appreciation of the theoretical controversies surrounding corporate finance policies, leading to formulation of financing strategies. Topics include competing capital structure theories including financial distress and agency costs, optimal dividend policy and taxation, IPOs in equity markets, motives for convertibles and warrants, rationales for corporate diversification including internal capital markets and agency theory. In each topic we will focus on the real-world applications of corporate finance tools and theories to address issues commonly faced by corporate managers, investors, and entrepreneurs.

  • General Course Information
    Course Details
    Course Code CORPFIN 7022
    Course Advanced Corporate Finance (M)
    Coordinating Unit Finance and Banking
    Term Semester 2
    Level Postgraduate Coursework
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Available for Study Abroad and Exchange Y
    Prerequisites ACCTING 7019 and CORPFIN 7005 and ECON 7200 and (CORPFIN 7033 or CORPFIN 7033MELB) or (CORPFIN 7033AUACM and CORPFIN 7033BUACM)
    Assessment Exam/assignments/tests/tutorial work as prescribed at first lecture
    Course Staff

    Course Coordinator: Dr Daniel Orlovsky

    Email: daniel.orlovsky@adelaide.edu.au
    Course Timetable

    The full timetable of all activities for this course can be accessed from .

    See Learning Activities Summary
  • Learning Outcomes
    Course Learning Outcomes
    On successful completion of this course, students will be able to:

    1. Critically evaluate theoretical research in corporate finance
    2. Explain the implications of theory for practical financial management
    3. Compare various models of investment decision making under uncertainty
    4. Investigate the impact of alternative financing proposals that a firm may face in both the short and long term and argue recommendations
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)

    Attribute 1: Deep discipline knowledge and intellectual breadth

    Graduates have comprehensive knowledge and understanding of their subject area, the ability to engage with different traditions of thought, and the ability to apply their knowledge in practice including in multi-disciplinary or multi-professional contexts.

    1 through 4

    Attribute 2: Creative and critical thinking, and problem solving

    Graduates are effective problems-solvers, able to apply critical, creative and evidence-based thinking to conceive innovative responses to future challenges.

    1 through 4

    Attribute 3: Teamwork and communication skills

    Graduates convey ideas and information effectively to a range of audiences for a variety of purposes and contribute in a positive and collaborative manner to achieving common goals.

    1 through 4

    Attribute 4: Professionalism and leadership readiness

    Graduates engage in professional behaviour and have the potential to be entrepreneurial and take leadership roles in their chosen occupations or careers and communities.

    1 through 4

    Attribute 5: Intercultural and ethical competency

    Graduates are responsible and effective global citizens whose personal values and practices are consistent with their roles as responsible members of society.

    1 through 4

    Attribute 8: Self-awareness and emotional intelligence

    Graduates are self-aware and reflective; they are flexible and resilient and have the capacity to accept and give constructive feedback; they act with integrity and take responsibility for their actions.

    1 through 4
  • Learning Resources
    Required Resources
    [BMA] Brealey, R., Myers, S., & Allen, F. (2019). Principles of Corporate Finance. 13th edition. McGraw-Hill Education

    [AD] Ackert, L., & R. Deaves. (2010). Behavioral Finance: Psychology, Decision-Making, and Markets, Cengage Learning.

    [RWJ] Ross, S., Westerfield, R., Jaffe, J., & Jordan, B. (2018). Corporate Finance. 12th edition. McGraw-Hill Education

    There are additional readings available under course readings on MyUni.
    Recommended Resources
    There is a list of recommended resources under course readings on MyUni.
    Online Learning
    Online resources provided on MyUni.
  • Learning & Teaching Activities
    Learning & Teaching Modes
    Lectures supported by problem-solving tutorials developing material covered in lectures.
    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week to their studies. This means that you are expected to commit approximately 9 hours for a three-unit course or 13 hours for a four-unit course, of private study outside of your regular classes. Students in this course are expected to attend all lectures throughout the semester plus one tutorial class each week.
    Learning Activities Summary
    Week Topic
    1 Does Debt Policy Matter?
    2 How Much Should a Firm Borrow?
    3 The Pecking Order & Stulz (1990)
    4 Leasing
    5 Convertible Debt
    6 Dividend Policy & Test 1
    7 Initial Public Offerings
    8 Executive Compensation 
    9 Corporate Governance
    10 Internal Capital Markets
    11 Behavioral Corporate Finance
    12 Course Overview & Exam Information
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    Assessment Task Due Weighting Topics Covered Learning Outcome
    Test 1 Week 6 20% 1-5 All
    Assignment TBA 20% TBA All
    Final Exam TBA 60% All All
    Assessment Detail
    Detailed information will be provided during the course.
    Submission
    Presentation of Assignments ·
    Please must retain a copy of all assignments submitted. · Please attach an ‘Assignment Cover Sheet’, which is signed and dated by you before submission. · All group assignments must be attached to a ‘Group Assignment Cover Sheet’, which must be signed and dated by all group members before submission. All team members are expected to contribute approximately equally to a group assignment. Lecturers can refuse to accept assignments, which do not have a signed acknowledgement of the University’s policy on plagiarism.

    Assignment Guidelines including Referencing Details
    A copy of the Postgraduate Programs Communication Skills Guide will have been given to you at the beginning of your program. This guide will assist you structure your assignments. This publication also provides guidelines on a range of other important communication skills including writing essays and management reports, making oral presentations etc. In preparing any written piece of assessment for your postgraduate studies it is important to draw on the relevant ‘literature’ to support critical analysis. Also essential is to reference the literature used. Correct referencing is important because it identifies the source of the ideas and arguments that you present, and sometimes the source of the actual words you use, and helps to avoid the problem of plagiarism. (Further information on plagiarism is provided later in this course outline.) The Harvard system is widely used in the Business School. Guidelines for the use of this style of referencing can be found in the Communication Skills Guide. Further assistance with referencing is available from the Faculty’s Learning Support Advisors. The contact details are provided on page 6 of the Communication Skills Guide.

    Late Assignment Submission
    Students are expected to submit their work by the due date to maintain a fair and equitable system. Extensions will generally only be given for medical or other serious reasons. All requests for extensions must be emailed to the lecturer in charge of the course before the due date. Each request will be assessed on its merits. A late assignment (without prior arrangement) will be penalised by a 5% mark reduction for each day that it is late.

    Return of Assignments
    Lecturer’s aim to mark and return assignments to students within two (2) weeks of the due date with written feedback. Students are responsible for collecting their marked assignments from the Hub.
    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through .

  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student鈥檚 disciplinary procedures.

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